among the Chinese business community by eliminating some conflicts of interests and reducing the prestige and power of the British. Restoration of British rule On 14 August 1945, when Japan announced its unconditional surrender, the British formed a naval task group to sail towards Hong Kong. On 1 September, Rear-Admiral Cecil Harcourt proclaimed a military administration with himself as its head. He formally accepted the Japanese surrender on 16 September in Government House. Young, upon his return as governor in May 1946, pursued political reform known as the "Young Plan", believing that, to counter the Chinese government's determination to recover Hong Kong, it was necessary to give local inhabitants a greater stake in the territory by widening the political franchise to include them. Transfer of Sovereignty The Sino-British Joint Declaration was signed by both the Prime Minister of the United Kingdom and the Premier of the People's Republic of China on 19 December 1984 in Beijing. The Declaration entered into force with the exchange of instruments of ratification on 27 May 1985 and was registered by the People's Republic of China and United Kingdom governments at the United Nations on 12 June 1985. In the Joint Declaration, the People's Republic of China Government stated that it had decided to resume the exercise of sovereignty over Hong Kong (including Hong Kong Island, Kowloon, and the New Territories) with effect from 1 July 1997 and the United Kingdom Government declared that it would relinquish Hong Kong to the PRC with effect from 1 July 1997. In the document, the People's Republic of China Government also declared its basic policies regarding Hong Kong. In accordance with the One Country, Two Systems principle agreed between the United Kingdom and the People's Republic of China, the socialist system of People's Republic of China would not be practised in the Hong Kong Special Administrative Region (HKSAR), and Hong Kong's previous capitalist system and its way of life would remain unchanged for a period of 50 years. The Joint Declaration provides that these basic policies shall be stipulated in the Hong Kong Basic Law. The ceremony of the signing of the Sino-British Joint Declaration took place at 18:00, 19 December 1984 at the Western Main Chamber of the Great Hall of the People. The Hong Kong and Macau Affairs Office at first proposed a list of 60–80 Hong Kong people to attend the ceremony. The number was